These are the words of Marcus Svedberg, Chief Economist of East Capital who made his first ever visit to Australia this week to meet with potential and existing investors. With the Eurozone already in recession, and likely to remain so for some time to come, Russia is looking increasingly attractive from an investment perspective due to its strong economic fundamentals:

Excellent public finances - a small budget surplus in 2011, low levels of debt (10%) and large reserves

Strong domestic consumption driven by rising incomes, low inflation, almost non existent personal debt (the average Russian has a mortgage of Euros 130 compared to Euros 12,370 in the Eurozone!) and a rapidly increasing numbers of aspirational, cashed up and upwardly mobile middle class consumers

Accession to the WTO will boost GDP and open up the economy for global trade

Russian oil companies have started to pay dividends for the first time (but remain undervalued)

New political and economic reforms promised by Putin under pressure in the run up to the Presidential election this weekend (which Putin is expected to win comfortably, despite negative comments in the media) are encouraging and long overdue.

East Capital's Russian Fund is up 22% so far in 2012 and expected to rise further after the Presidential election. The market remains cheap and valuations are at rock bottom with the chances of a re-rating at some stage.

Investors should look closely at Russia now to get in before the rush!!

Our regular videopocast, "Think Global with David Thomas" included an interview with Marcus Svedberg and can be viewed here: